IDEAS home Printed from https://ideas.repec.org/p/lan/wpaper/542822.html
   My bibliography  Save this paper

Outcome uncertainty and the couch potato audience

Author

Listed:
  • B Buraimo
  • D Forrest
  • R Simmons

Abstract

Previous studies of attendance demand for professional team sports have failed to yield clear- cut findings on the importance of outcome uncertainty to consumers. But potentially fewer problems should arise in examining the link between outcome uncertainty and demand in the television market for team sports, which in the case of English Premier League football is in fact a more important component in total club revenue. This study models both the choice of which games to show and the size of audience attracted by each game, exploiting data on audience sizes for games between 1993 and 2002. We propose a new measure of match outcome uncertainty and, from our results, both the broadcaster and the audience appear interested in competitive balance.

Suggested Citation

  • B Buraimo & D Forrest & R Simmons, 2004. "Outcome uncertainty and the couch potato audience," Working Papers 542822, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:542822
    as

    Download full text from publisher

    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/CouchPotatoAudience.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
    2. Raymond D. Sauer, 1998. "The Economics of Wagering Markets," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2021-2064, December.
    3. Andrew Welki & Thomas Zlatoper, 1999. "U.S. professional football game-day attendance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(3), pages 285-298, September.
    4. Daniel, Rascher, 1999. "A Test of the Optimal Positive Production Network Externality in Major League Baseball," MPRA Paper 25832, University Library of Munich, Germany.
    5. Jennett, Nicholas I, 1984. "Attendances, Uncertainty of Outcome and Policy in Scottish League Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 31(2), pages 176-198, June.
    6. R. A. Hart & J. Hutton & T. Sharot, 1975. "A Statistical Analysis of Association Football Attendances," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 24(1), pages 17-27, March.
    7. Baimbridge, Mark & Cameron, Samuel & Dawson, Peter, 1996. "Satellite Television and the Demand for Football: A Whole New Ball Game?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(3), pages 317-333, August.
    8. Cave, Martin & Crandall, Robert W, 2001. "Sports Rights and the Broadcast Industry," Economic Journal, Royal Economic Society, vol. 111(469), pages 4-26, February.
    9. Peel, David A & Thomas, Dennis A, 1992. "The Demand for Football: Some Evidence on Outcome Uncertainty," Empirical Economics, Springer, vol. 17(2), pages 323-331.
    10. Georg Stadtmann & Dirk Czarnitzki, 2002. "Uncertainty of outcome versus reputation: Empirical evidence for the First German Football Division," Empirical Economics, Springer, vol. 27(1), pages 101-112.
    11. Steven D. Levitt, 2004. "Why are gambling markets organised so differently from financial markets?," Economic Journal, Royal Economic Society, vol. 114(495), pages 223-246, April.
    12. Avery, Christopher & Chevalier, Judith, 1999. "Identifying Investor Sentiment from Price Paths: The Case of Football Betting," The Journal of Business, University of Chicago Press, vol. 72(4), pages 493-521, October.
    13. Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Besters, Lucas, 2018. "Economics of professional football," Other publications TiSEM d9e6b9b7-a17b-4665-9cca-1, Tilburg University, School of Economics and Management.
    2. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    3. Dorian Owen, 2014. "Measurement of competitive balance and uncertainty of outcome," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 3, pages 41-59, Edward Elgar Publishing.
    4. Marco Di Domizio, 2013. "Football on TV: an empirical analysis on the italian couch potato attitudes [Fútbol en la televisión: un análisis empírico sobre las actitudes coach potato de los italianos]," Papeles de Europa, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Estudios Internacionales (ICEI), vol. 26(1), pages 26-45.
    5. Ferda HALICIOGLU, 2005. "Forecasting the Professional Team Sporting Events: Evidence from Euro 2000 and 2004 Football Tournaments," Industrial Organization 0508001, University Library of Munich, Germany.
    6. Kevin Alavy & Alison Gaskell & Stephanie Leach & Stefan Szymanski, 2010. "On the Edge of Your Seat: Demand for Football on Television and the Uncertainty of Outcome Hypothesis," International Journal of Sport Finance, Fitness Information Technology, vol. 5(2), pages 75-95, May.
    7. Schreyer & Torgler Benno & Schmidt Sascha L., 2018. "Game Outcome Uncertainty and Television Audience Demand: New Evidence from German Football," German Economic Review, De Gruyter, vol. 19(2), pages 140-161, May.
    8. Marco Di Domizio & Raul Caruso, 2015. "Hooliganism and Demand for Football in Italy: Attendance and Counterviolence Policy Evaluation," German Economic Review, Verein für Socialpolitik, vol. 16(2), pages 123-137, May.
    9. Scott Tainsky & Jie Xu & Brian M. Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
    10. Raul Caruso & Francesco Addesa & Marco Di Domizio, 2019. "The Determinants of the TV Demand for Soccer: Empirical Evidence on Italian Serie A for the Period 2008-2015," Journal of Sports Economics, , vol. 20(1), pages 25-49, January.
    11. Buraimo, Babatunde & Simmons, Rob, 2009. "A tale of two audiences: Spectators, television viewers and outcome uncertainty in Spanish football," Journal of Economics and Business, Elsevier, vol. 61(4), pages 326-338, July.
    12. Scott Tainsky & Jie Xu & Brian Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
    13. Lahvicka, Jiri, 2010. "Attendance of ice hockey matches in the Czech Extraliga," MPRA Paper 27653, University Library of Munich, Germany.
    14. Schreyer, Dominik & Schmidt, Sascha L. & Torgler, Benno, 2016. "Against all odds? Exploring the role of game outcome uncertainty in season ticket holders’ stadium attendance demand," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 192-217.
    15. Jigyu Chung & Young Hoon Lee & Joon-Ho Kang, 2016. "Ex Ante and Ex Post Expectations of Outcome Uncertainty and Baseball Television Viewership," Journal of Sports Economics, , vol. 17(8), pages 790-812, December.
    16. Nicholas King & P. Dorian Owen & Rick Audas, 2012. "Playoff Uncertainty, Match Uncertainty and Attendance at Australian National Rugby League Matches," The Economic Record, The Economic Society of Australia, vol. 88(281), pages 262-277, June.
    17. Coates, Dennis & Humphreys, Brad & Zhou, Li, 2012. "Outcome Uncertainty, Reference-Dependent Preferences and Live Game Attendance," Working Papers 2012-7, University of Alberta, Department of Economics.
    18. Men-Andri Benz & Leif Brandes & Egon Franck, 2009. "Do Soccer Associations Really Spend On A Good Thing? Empirical Evidence On Heterogeneity In The Consumer Response To Match Uncertainty Of Outcome," Contemporary Economic Policy, Western Economic Association International, vol. 27(2), pages 216-235, 04.
    19. Sung, Hojun & Mills, Brian M., 2018. "Estimation of game-level attendance in major league soccer: Outcome uncertainty and absolute quality considerations," Sport Management Review, Elsevier, vol. 21(5), pages 519-532.
    20. Barry Reilly, 2015. "The Demand for League of Ireland Football," The Economic and Social Review, Economic and Social Studies, vol. 46(4), pages 485-509.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lan:wpaper:542822. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giorgio Motta). General contact details of provider: https://edirc.repec.org/data/delanuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.